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4 marksFinancial Statement Analysis and Interpretation

CAPE Accounting Unit 1 · 2009 · Paper 2 · Question 3(b)(i)

Financial ratios for Cheryl's Salon for 2007 and 2008 along with industry averages are provided.

State TWO uses and TWO limitations of financial ratios.

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Other parts of this question

  1. 3(a)Prepare a Statement of Cash Flows for 2008 showing clearly cash flows from operating activities, investing activities and financing activities.[23 marks]
  2. 3(b)(ii)Discuss the performance of Cheryl's Salon over 2007 and 2008 in terms of liquidity and profitability using the industry averages as benchmarks.[8 marks]

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